Bloomberg "Anywhere" Remote Login Bloomberg "Terminal" Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Yahoo Contract Spurs Babylon’s Biggest Two-Day Decline on

Oct. 21 (Bloomberg) -- Babylon Ltd., Israel’s largest translation software maker, posted the biggest two-day retreat on record after saying Yahoo! Inc. may suspend their partnership.

Babylon sank 15 percent to 23.30 shekels in Tel Aviv in the past two days, the most since the company’s initial public offering in February 2007. Volumes today were five times the daily average during the past three months.

Failure to resolve the defects in the agreement’s implementation by the end of the day will lead to breach of contract, Yahoo told Babylon in a letter, according to a statement to the Tel Aviv Stock Exchange yesterday. Babylon signed in April a four-year accord with Yahoo as it seeks to diversify income sources. Second-quarter revenue from that relationship more than tripled to 32 percent from 10 percent in the previous period.

“If the deal is terminated this is bad news for Babylon in the short term because Yahoo represented 30 percent of revenue in the last quarter,” Eran Jacoby, head of research at DS Securities & Investments in Tel Aviv, said by phone today. “If the deal is preserved, then the share will correct.”

To contact the reporters on this story: Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net; Matthew Kanterman in New York at mkanterman2@bloomberg.net

To contact the editor responsible for this story: Tal Barak Harif at tbarak@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.